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2. Advanced Medical Technology is a new, rapidly growing firm that produces specialized medical instruments. They...

2. Advanced Medical Technology is a new, rapidly growing firm that produces specialized medical instruments. They sell to hospitals and other surgical units, and a substantial portion of their sales are to foreign governments. Typical payable terms in the industry are payment with 30 days.

They recently reported the following financial information:

            Sales                            $225,000          

            Cost of sales                  180,000          

            Inventory                           33,000         

            Accounts receivable          72,000         

            Accounts payable             30,000         

            # of Days per year               365          

                       

Compute the additional working capital financing period for Advanced Medical.

           

                       

Comment on their working capital financing period.   What actions might Advanced take to improve their situation?

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